Posted on 09/18/2011 2:33:41 PM PDT by EnglishCon
"They [the US and Europe] intend to weaken gold's function as an international reserve currency. They don’t want to see other countries turning to gold reserves instead of the US dollar or Euro," stated the 2009 cable, quoting Chinese Radio International. "China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold."
.....
Buying gold and allowing the yuan to be traded freely would weaken the US dollar's dominance as the international reserve currency. The move would have major implications, making it more expensive for the US government to borrow money and to run perpetual trade and budget deficits.
(Excerpt) Read more at english.aljazeera.net ...
Don’t worry. Dominique Strauss-Kahn, formerly of the IMF has it all under control...*SMIRK*
(Translation: We’re screwed...)
Aside from the fact the report is about events underway for two years it is describing ordinary Chinese policy. The Chinese always go for gold
This a reversion toward the mean.
This appears to be a misprint.
Central banks are buying gold to bolster their currencies as a hedge against the US currency -- which the world had taken as essentially "good as gold" -- until they could no longer deny that our neither multi-trillion dollar debt nor our trillion-dollar budget deficit can be repaid by tax revenue from a domestic economy that is being undermined by communist sympathizers in the Administration.
It's that simple.
In light of the current, utterly irresonsible budget-busting activities on the part of America’s Democrats, stimulated by the idiotic activities of the dunce in the White House, the dollar’s value continues to slide.
If this isn’t stopped, the time will come when we’ll look back with nostalgia (and growing poverty) on the days when the dollar was the world’s international currency.
I have to say, I’m not sure that I’d read this rag even if they published tomorrow’s lottery numbers.
“In light of the current, utterly irresonsible budget-busting activities on the part of America’s Democrats, stimulated by the idiotic activities of the dunce in the White House, the dollar’s value continues to slide.”
Plus Boehner, McConnell and the enabling Republicans. The federal government’s fiscal 2012 begins October 1, 2011. Have we seen a budget produced by the Republican House of Representatives for 2012 yet? All spending bills must originate in the House. So much for the Tea Party and the Republicans. If they were at all serious they would have submitted by now a balanced budget for 2012. Instead they will allow Obama to spend at will, just as he has for the past 2 years under Pelosi.
China has been buying huge amounts of gold for many years because their culture values gold for more than just a store of monetary value. Gold jewelry is highly valued among the Chinese, and in Hong Kong before the British pulled out there was a lot of goldsmiths making gold jewelry for both local and foreign sales (my family knew quite a lot of goldsmiths).
If you paid attention and had a clue about what you say, you would know the Republican House budget was passed months ago
It is the Senate that is purposely not acting and forcing another crisis.
China has been the world’s biggest gold buyer for the past decade, at least.
True the budget was passed. Why are Boehner and McConnell not clamoring for passage in the Senate?
Instead of being on offense, demanding passage of the 2012 budget, the Republicans have allowed Obama to take charge of the agenda, putting them on the defense with respect to tax policy.
The issue of the day should be passing the budget, not defending marginal tax rates for the “wealthy”.
China is also the world’s largest producer of gold, and is still a net buyer and importer.
They want to exchange depreciating dollars for appreciating bullion, but don’t want to cause a stampede rush for the dollar exits, because they’d lose too much in a disorderly exit and dumping of the rapidly rotting dollar.
There is one other consideration about which I’m not sure.
The debt ceiling negotiations might have something to do with the budget for next year.
I don’t know and think the money runs out again next week.
Remember what I just said: the Chinese value gold more than just as an store of monetary value. They want the gold to cover not only monetary needs, but also the needs of gold jewelry, where demand is quite strong among the fast-growing middle and upper classes.
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